If you needed any further evidence that the city's real estate market is trending downwards, here you have it: This rather jaw-dropping East 12th Street townhouse, owned by one of the founding members of Kate Spade, just saw a $1 million price chop, bringing the asking price down to $11 million. And as Luxury Listings NYC reported last summer, it was on the market for $16 million as recently as June, meaning the current asking is a hefty $5 million discount from the original price.

That said, the house is a stunner. The ground floor features 13.5-foot ceilings, as well as floor-to-ceiling windows, which work with the home's skylight to flood the stairwell and entertaining areas with natural light.

The parlor level also has an eat-in kitchen which has been renovated to include marble countertops and high-end appliances, and features a stairway leading down into the 1,100-square-foot back garden.

The upper levels feature six bedrooms and four bathrooms, including a master suite with its own sitting room, dressing room, and en-suite bath.

There's some investment potential here, as well; the garden level is currently renovated as an income-producing one-bedroom rental and artist's studio, though it could easily be integrated into the rest of the home. Additionally, the listing notes that while the current home clocks in at 5,000 square feet, there's an additional 5,000-square-foot FAR with which to expand, meaning that you could turn the building into a 10,000-square-foot home or apartment building, if you've got deep pockets for a major construction project:

Interestingly, the home is also for rent for $40,000/month, which on top of the dramatic price chops, suggests a highly motivated seller—and perhaps, room for further negotiation.